Hidden GEMS: Costs to Developing Countries of MDB’s not Democratizing investor access to the GEMs risk database

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The majority of emerging markets and developing countries (EMDCs), climate, SDG financing and investment needs (more so than advanced economies) finance by private capital at scale, during current and historic times, when the high perception of EMDC risk remains a binding constraint to attracting private capital at scale, compounded by an MDB private capital mobilization market failure, to deliver the $1 of MDB finance mobilizing $10 of private capital.

About GEMs

Transparency of risk-related data is essential to the process of risk evaluation and sharing – to remediate the potential for a ‘risk perception gap’, whereby credit rating agencies and institutional investors may perceive the risks to be higher than what the data shows as the actual risk, which can mean that emerging markets and developing countries may be paying an unnecessary premium on their cost of capital.

Through advocating for transparency and democratizing access to The Global Emerging Markets (GEMs) Risk Database, Heads of State as Governing Plenipotentiary Sovereign MDB shareholders can help prevent unnecessary premiums being paid on the cost of capital for EMDC’s, and support the building of markets through increased disclosure around track records, and improved efficiency of MDBs’ capital deployment and private finance mobilization towards EMDC beneficiary climate and development needs through.

Read the full report: HERE

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